ET Market Watch: Sensex flat as RIL, IT drag; Eternal soars 10% in 1 day
Hi, you're listening to ET Markets Radio. I am your host, Neha Vashishth. Welcome to a fresh episode of ET Market Watch -- where we bring you the latest news from the world of stock markets every single day. Let's get to it:Nifty dipped below 25,100 today. Sensex closed nearly flat, down just 13 points.And here's why:Reliance tumbled 1.1%, extending Monday's fall. Oil-to-chemicals and retail weakness are weighing heavy.IT stocks were no help either: Infosys, HCL Tech, Oracle Financial all in the red.But there was one bright spark:Eternal, the Zomato parent, soared over 10% on signs of margin improvement in Blinkit.It was the top contributor to Nifty gains today.Financials stayed strong, with ICICI and HDFC Bank in green after solid Q1 numbers.But overall sentiment? Subdued. Midcaps and smallcaps, both slipped.Experts say: Earnings season and US trade talks are keeping investors on edge.Technically, Nifty remains stuck in a range. Key support? 24,900.Watch for resistance at 25,260.Globally, Asian markets cooled off. Oil dropped again. And the rupee? Down for the fifth straight session.That's your market snapshot in under a minute!Follow for daily insights. See you tomorrow!
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India Today
6 minutes ago
- India Today
Trump tariffs trigger volatility on D-Street: What should investors do?
Domestic stock markets opened on a jittery note Thursday after US President Donald Trump announced an additional 25% tariff on certain Indian exports, citing India's continued imports of Russian oil. While the move was widely expected, it has added another layer of uncertainty for investors already grappling with global Sensex slipped over 250 points at the open before paring some losses. The Nifty50 was also trading lower, reflecting broad-based caution and expectations of a volatile trading REMAINS HIGHDr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the 21-day window before the tariffs come into effect offers room for negotiation. However, the outlook remains clouded. 'There is huge uncertainty surrounding the trade policy and to what extent both nations will be willing to make compromises,' he said. 'President Trump, fresh from the successes he has extracted in deals with others,others, including the EU, is unlikely to budge significantly from his unjustified stand. Unfortunately for India, the US is bargaining from a position of strength.'He praised India's 'mature and measured' response so far but warned that the market could remain under pressure in the near term. 'Export-oriented sectors will remain weak. Domestic consumption themes like banking and financials, telecom, hotels, cement, capital goods and segments of automobiles will remain resilient,' Vijayakumar CAUGHT OFF GUARDAccording to Santosh Meena, Head of Research at Swastika Investmart, markets had already priced in this escalation to an extent. 'This move was largely anticipated by the markets, as President Trump had earlier hinted at such a development. As a result, there is no fresh negative surprise,' he noted that India has so far resisted pressure from Washington, especially in protecting its politically sensitive agriculture and dairy sectors. He characterised the tariff hike as 'part of Trump's aggressive negotiation strategy' and pointed to the upcoming US trade delegation visit on August 24 as a key moment to believes India's core economic strength lies in domestic demand, and that acts as a buffer. 'India remains a domestic consumption-driven economy, with limited direct exposure to the US, except in key sectors like IT, pharmaceuticals, and electronics,' he said, adding that these have been spared from the latest tariff list. However, textiles, gems and jewellery, and leather may come under 'sentimental pressure in the near term.'Rahul Ahluwalia, Founder-Director of Foundation for Economic Development, said, 'The main sectoral impact will be felt by labour-intensive areas which do not have tariff exemptions, like apparel, gems, jewellery and other such sectors where overall we have more than 30bn USD of exports to the US.'WHAT SHOULD INVESTORS DO? advertisementFor long-term investors, Meena advises staying invested. 'This development is part of ongoing global trade tensions and shouldn't distract from India's long-term growth potential,' he said, suggesting that short-term corrections could offer entry opportunities ahead of an expected earnings revival in the coming traders, however, may want to be more defensive. 'The short-term outlook remains uncertain due to a combination of muted Q1 earnings, stretched valuations, and global trade tensions,' Meena said. 'A selective approach is advisable.'With geopolitical tensions rising and domestic indicators turning soft, investors are bracing for a volatile ride. Export-facing sectors may struggle in the near term, but experts seem to suggest that India's underlying consumption story remains intact.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
The Hindu
6 minutes ago
- The Hindu
Rupee rises 5 paise against U.S. dollar in early trade
The rupee traded in a narrow range and appreciated 5 paise to 87.67 against the U.S. dollar in early trade on Thursday (August 7, 2025), after U.S. President Donald Trump slapped an additional 25 per cent duty — doubling it to 50 per cent — on Indian goods over New Delhi's continued imports of Russian oil. Forex traders said Mr. Trump's aggressive move, which kicks in 21 days, threatens to raise total duties on select Indian exports to as high as 50 per cent — making them among the most heavily taxed U.S. imports globally. At the interbank foreign exchange, the domestic unit opened at 87.69 against the U.S. dollar then touched an initial high of 87.67, higher by 5 paise over its previous close. On Wednesday (August 6), the rupee rebounded from a record low level and closed 16 paise higher at 87.72 against the U.S. dollar. Mr. Trump's tariffs on Indian exports are likely to hit sectors such as textiles, marine and leather exports hard and was slammed by India as "unfair, unjustified and unreasonable". With this action singling out New Delhi for the Russian oil imports, India will attract the highest U.S. tariff of 50 per cent along with Brazil. The United States has imposed this additional tariff or penalty for Russian imports only on India while other buyers such as China and Turkey have so far escaped such harsh measures. The 30 per cent tariff on China and 15 per cent on Turkey is lower than India's 50 per cent. "The escalation adds to concerns over the economic impact. If no breakthrough happens within the 21-day window, FY26 GDP growth may have to be revised below 6 per cent, factoring in a 40–50 basis point hit — twice the earlier estimate from tariff effects," CR Forex Advisors MD Amit Pabari said. Mr. Pabari further noted that amid these rising tensions and economic concerns, the rupee remains vulnerable and could see further downside as uncertainty continues to mount. Meanwhile, the Reserve Bank of India opted to hold the repo rate steady at 5.50 per cent and retained a neutral stance during its latest policy review. "The decision suggests policymakers are adopting a wait-and-watch approach as they weigh the uncertain trade backdrop against an already slowing global economy," Mr. Pabari said, adding that the room for manoeuvre is tightening. India's foreign exchange reserves fell by $9.3 billion to $688.9 billion as of August 1, reflecting Central Bank's active rupee defence operations amid rising external stress, he said. Meanwhile, Brent crude prices rose 0.99 per cent to $67.55 per barrel in futures trade. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 98.21. In the domestic equity market, Sensex dropped 335.71 points to 80,208.28 in early trade, while the Nifty declined 114.15 points to 24,460.05. Foreign institutional investors (FIIs) offloaded equities worth ₹4,999.10 crore on a net basis on Wednesday, according to exchange data.
Economic Times
6 minutes ago
- Economic Times
Domestic-focused strategy key amid global tariff turmoil: Sunil Subramaniam
That provides another tailwind for earnings growth. "Foreign investors have been avoiding export-oriented sectors due to the uncertainty around tariffs. As a result, sectors like pharma and IT have already seen price corrections. So, if you're a risk taker, you can argue that India is not without tools to respond to tariffs," says Sunil Subramaniam, Market Expert. How does an investor—or how do our viewers—navigate the uncertainty that comes with the recent developments? We are now seeing an additional tariff overhang of 250% on pharma, and there are also threats of broader tariffs on India as a whole. How should our viewers deal with these uncertainties in the current market? Sunil Subramaniam: First, as a viewer, you need to assess your own risk profile. What is your ability to handle volatility, which is inevitable in these times—thanks to Mr. Trump's tweets and the general uncertainty? If you are a risk-taking investor, you might view this situation differently. Let's say we face a higher oil-related tariff that goes from 25% to 30%, and pharma tariffs rise significantly over time. The key point here is that much of this negative sentiment is already priced into the market. I'm not saying the correction is entirely over—there may be more to come—but a large part of the correction has been driven by FIIs staying away from Indian investors have been avoiding export-oriented sectors due to the uncertainty around tariffs. As a result, sectors like pharma and IT have already seen price corrections. So, if you're a risk taker, you can argue that India is not without tools to respond to tariffs. For example:Currency depreciation can help offset some tariff impacts. The government may offer productivity-linked incentives to enhance can explore alternative export markets like the EU and other Asian yes, a lot of the bad news is already in the price. But if your risk appetite is not aggressive, it's better to avoid external-oriented should 'Trump-proof' your portfolio by focusing on domestic sectors, which are less impacted by these global tensions. Domestic mutual funds have bought ₹2 lakh crore worth of equities in the last three months—about ₹60,000 to ₹65,000 crore per month. Much of what FIIs sold, domestic funds picked up. When FIIs sell, they often sell across the board, including both domestic and export-oriented stocks, as part of index-based selling. But domestic investors have focused on local sectors, which is why those haven't fallen as creates a degree of built-in safety. And I don't expect domestic fund managers to take big bets on external-oriented sectors just yet. They too are likely to prefer domestic stories. Additionally, the ongoing earnings season will be a key trigger for you are a moderate-risk investor, I would suggest sticking to domestic-oriented sectors such as consumption, banking and financial services, and capital goods (for slightly longer-term investors).At this stage, I'd recommend going through mutual funds rather than picking individual stocks. Domestic funds have already bought the good stocks, and those prices have gone up. It's difficult for a retail investor to identify undervalued stocks within the domestic space right now, especially with earnings season still underway. So, multicap and multi-asset funds could be a good approach. Also, keep in mind the potential for a Fed rate cut. The NFP data in the U.S., combined with President Trump's pressure to appoint loyalists to the Fed, increases the odds of a rate cut. That could be a tailwind for emerging market equities, possibly bringing some FII flows back to India. The key is to take a balanced approach. Avoid tariff-impacted sectors unless you have a high risk appetite. If you look at the RBI's policy today, macro indicators like growth and inflation seem positive. Despite the tariff threats, the RBI hasn't revised India's growth forecast—it's still at 6.5% for the current year. They have access to comprehensive data, so that's reassuring. Also, remember that exports are just 2% of India's GDP. Our economy is relatively insulated compared to many global peers. So, it's better to align with the domestic economy's strength and RBI's stable policy. In fact, the RBI's decision to pause rate cuts suggests confidence in the economy—it doesn't feel the need for additional stimulus. That's a good stay confident in the domestic story and align your portfolio accordingly, especially if you are a moderate-risk investor. What's your overall view on the paint sector? We've seen Asian Paints moving higher recently. Today we also spoke to Berger Paints' management, and they seem quite optimistic about the demand outlook. With increasing competition, do you still favour the traditional players? Sunil Subramaniam: I believe the correction in paint stocks was a bit overdone. These are all fundamentally strong companies. Yes, monsoon season tends to slow down construction activity, which may impact painting demand temporarily, especially in residential housing. So, we could see a soft quarter. However, as private capex picks up, industrial paint demand will grow. So, I think now is a good time to enter paint stocks. As you mentioned, we're already seeing signs of a though the lack of a rate cut may have temporarily affected rate-sensitive sectors like real estate, I still maintain a positive outlook. Paints fall under both building materials and premium retail categories—they straddle multiple sectors, making them more paint companies are largely domestically oriented. A major positive for their margins is the softening of crude oil prices, as crude derivatives are key raw materials in paint manufacturing. That provides another tailwind for earnings growth.
